18 Mar 2025
📈Cboe Exchange Updates Preferred Market-Maker Participation Rules
Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Rules Related to the Preferred Market-Maker (“PMM”) Participation Entitlement
Summary
The Securities and Exchange Commission published a notice regarding a rule change by Cboe Exchange, impacting the participation entitlements of Preferred Market-Makers (PMMs). The amendment proposes a 60/40 entitlement percentage and ensures PMMs receive at least one contract if they quote at the best price, aiming to enhance liquidity and trading opportunities.
Agencies
- Securities and Exchange Commission
Business Impact
$$ - Med
The proposed rule change by Cboe Exchange alters participation entitlement for Preferred Market-Makers, which may enhance trading benefits and liquidity for participants. This change could influence cost structures and competitive dynamics for business owners in trading environments.